Alcohol from Europe becomes a luxury in the US, many will lose their work
According to them, jobs are also expected to be lost on both sides of the Atlantic.
| The last round of global and targeted duties on Trump countries will affect all the drinks – from the popular Nigony cocktail, which is prepared with the Italian Campari liqueur, to the Guinness dark beer made by the world leader in the alcohol industry Diageo. |
- Trump also introduced a 25% duty on all imported beers by adding the buns to duties on aluminumhitting brands like Mexican Corona and Dutch Heineken.
- However, the shares of some companies, such as Diageo and Campari, have increased as threats of 25% duties on Mexican tequila and Canadian whiskey have not taken place. The threat of 200% duty on European alcohol also remains unfulfilled so far.
According to industry representatives, the duties imposed on Wednesday are already high enough to strike a serious blow to sectors that rely largely on sales in the United States.
Which US Economy sectors are affected by new duties
| Exports of alcohol from Europe to the United States in 2024 amounted to EUR 2.9 billion, according to the SPIRITSEurope Trade Organization. According to her, many jobs in the US also depend on this commercial flow. |
- French organizations and official representatives have warned of a 20% decline In sales and mass cuts in regions such as cognac, where the French alcohol drink is produced, mainly for exports to the United States and China.
- The Spanish Association of Wine Producers He warned that no market could compensate for lost sales in the United States.
Profitable
Many brands that cannot be replaced by locally produced will disappear from the tables of US consumers, while a serious crisis in production and employment is being set in Italy and Europe.
Michela Pallinichairman of the Italian Federvini Commercial Association
Japanese beverage producer Suntory has announced that it will emphasize sales of spirits in the countries where they are produced to avoid the influence of duties.
New American duties: When, why and against whom Trump introduced them
Other major spirits and beer producers refused to comment, did not immediately respond to inquiries, or indicated that they were still evaluating the impact of the measures.
| According to UBS analysts, large spirits manufacturers will have to increase prices by 2% to 5% to cover duties, or to bear the costs, which would lead to the same decline in operating profit. |
| « There will be profitable and loser, » said Tammy Curtis, Senior Vice President of Commercial Finance at the Republic National Distributing Company, one of the largest alcohol distributors in the United States. She added that the products where customs duties can be partially absorbed by the supply chain will better bear the changes. |
Wine and cognac sales are already declining in the United States, and French and Spanish winemakers have told Reuters that US consumers will have to pay some of the cost of duties.
This would harm the US wine sector more than foreign producers, warned the American wine trade.
Impasse
Strategies used to mitigate the effect of customs duties during Trump’s first term, such as transporting unpainted wine, will not help in this case because of the large -scale taxes, said the chairman of the CIVB Bordeaux Association, Alan Coshel.
| Some manufacturers may be able to move production or part of it, such as bottling. But products such as French champagne or Scottish whiskey must be manufactured in certain countries or regions and cannot be moved. |
- The Irish whiskey industry exports 40% of its production in the United States, which is a major driver of growth and aids expanding other markets, said EIIN O’Kahain, head of the Irish whiskey association.
Companies are likely to focus their attention elsewhere, especially given continuing insecurity, Okahain added.
While Europe has so far avoided a 200% duty that Trump has threatened to impose, it can become a fact if the EU responds with duties on American spirits, such as bourbon.
« If the duty rises to 200%, it will be the end. The US market will be lost, » said Frederick Zaimet, CEO of the Champagne House, Leclerc Bryant, which exports to the United States.
